Fade the Value Rebound
Cross Asset Strategy
171 Views, 17 Jan 2022 05:08
- The economy is transitioning to a mid-cycle phase of its expansion. Economic and earnings growth momentum are fading after the initial V-shaped recovery in stock prices.
- Similar episodes in 1994, 2004 and 2010 resolved themselves with sideways and choppy stock markets.
- Investors should not expect superior performance from value and cyclical sectors. Instead, focus on stocks with quality growth characteristics and defensive names.